Canadian real estate group raises 2021 forecast https://creastats.crea.ca/en-CA/
Canada’s national real estate group raised its annual sales forecast by 20 per cent, as cheap money and frenetic demand for homes continue to push up activity and home prices.
Sales are on track to reach 701,000 homes this year, while the average selling price is set to hit $665,000, according to the Canadian Real Estate Association’s forecast released on Monday. That is significantly higher than the association’s December prediction for annual sales of 584,000 and average selling price of $620,400.
The revised outlook comes after another record setting month for the Canadian housing market. Home sales were 39 per cent higher than February of last year, while the average home price was 25 per cent above last year at $678,091. Some of the same forces that propelled the market after the pandemic started have continued to contribute to the housing boom: low mortgage rates, desire for bigger spaces, shift outside of urban centres and low inventory.
The pandemic’s housing frenzy has taken place in the detached housing market in the suburbs, semi rural areas and smaller cities. Those areas in Ontario continued to experience the steepest price gains.